Question
What is the function of a promissory note or bond when used in conjunction with a mortgage?A. It furnishes a complete legal description of the propertyB. It makes the borrower personally obligated to pay the debtC. It provides the elements necessary to make the mortgage validD. In case of default, it limits the lender’s rights to interest only
Answer
B. It makes the borrower personally obligated to pay the debt.
- Q: What is a promissory note or bond? A: A promissory note or bond is a legal document that promises repayment of a debt.
- Q: What is a mortgage? A: A mortgage is a loan used to purchase real estate, where the property itself serves as collateral for the loan.
- Q: What is the function of a promissory note or bond when used in conjunction with a mortgage? A: B. It makes the borrower personally obligated to pay the debt.